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Switzerland is one of the countries that have the most suitable legal framework for cryptocurrency investments. It is an attractive location for launching the initial coin offering (ICO). ICOs are Raised and used to fund an investment company which deals with the issuance of new cryptocurrencies. It is a modern method of raising capital and an alternative to the initial public offering (IPO) In Switzerland; ICOs funds are allocated using the government regulated currencies along with other virtual currencies, such as Ethereum and Bitcoin.
ICO regulations in Switzerland
People in business that are interested in starting a fund in Switzerland through ICOs must be aware that the Swiss Financial Market Supervisory Authority (FINMA) addresses each case and decides whether it falls under a specific rule of law.
Specific ICO models can be regulated by the following law:
• Swiss Anti-Money Laundering Act
• Banking Regulations
• Acts and Regulations related to Collective Investment Schemes.
Types of tokens used for ICOs in Switzerland
• payment tokens or cryptocurrencies
• utility tokens
• asset tokens.
These tokens can also be divided into two main categories:
• intrinsic tokens
• asset-backed tokens.
In Switzerland, intrinsic tokens, e.g., Bitcoin, are seen just as regular currency, this means that the exchange of any currency into a token used for ICO will be regulated under the Swiss Anti-Money Laundering Act.
More significantly, any person investing in ICOs a sum above CHF 5,000 will fall under the „Know Your Client” policies.
During the first three quarters of 2017, Switzerland recorded a significant achievement in value on the investments funded through ICOs, as it attracted 1/4 of all the ICOs concluded at a global level which accounted for approximately $ 3 billion.